Credit card firms turn on good payers

New claims have emerged that data checks are now being used to rule out customers who aren't making the provider any profit

Consumer groups have called on the City watchdog to investigate credit-card firms amid fears they are using personal data to weed out "good" customers who use cards only for the perks.

Comparison sites report a marked increase in the number of borrowers with exemplary credit ratings and high incomes who are being turned down by card firms this year, since new rules on data sharing came into force in January.

Card firms can now exchange "behavioural" information about how customers use their cards, including whether they pay off their balances in full every month or use interest-free offers before dumping a card - making a loss for the provider.

Under rules set out by the UK Payments Association (formerly Apacs), this data should be used to prevent people falling into debt and not for commercial purposes. However, consumer groups fear it is being used to identify "unprofitable" borrowers.